The best bid may not be the best bid. Such is the thinking on the Jackson city council. The city council postponed voting to designate Bancorp South as a depository for the city's public funds at its regular meeting last Tuesday. Trustmark provides the current depository services to the city. The Yarber administration accepted bids from Trustmark, Bancorp South, and BankPlus for banking services. The bids are posted below:
Bancorp South proposed an interest rate that was three basis points better than the one proposed by Trustmark. The cost proposed by Bancorp South was cheaper than Trustmark's bid by $35,472. The net gain under Bancorp South's bid is $60,972 better than Trustmark's bid. Thus Bancorp South beat Trustmark on both annual cost and the interest rate.
Needless to say, several council members objected to voting on whether to accept the bid. Councilwoman Margaret Barrett-Simon wanted to send the matter to committee as she didn't feel comfortable voting on it. Mayor Tony Yarber said he received "several concerns in the last 24 hours" about transferring the city money from one bank to another. He stressed several times that the city used a bid process. Trustmark has been the city depository for thirty years. The resolution (posted below) is on the agenda for Monday's meeting of the city council. Mayor Yarber said the council needed to make a decision soon as certain transactions needed to take place before the end of the year is a change in depository's is made.
Kingfish note: How many bond deals have some of these councilwomen and councilmen voted for without question? The city actually pursues bids and prepares to accept the best bid and suddenly the city council wants to backtrack. The Mayor pointed out that no council members questioned the deal at the previous day's work session. Hmm..... does anyone think some banks started making the phone calls? Nah, that couldn't happen in Mississippi. Not at all.